Renewal period of Foreign Investment Licences extended to 5 years by Saudi Arabia

Saudi Arabia extended foreign investment licences to a renewable period of up to five years from one year, in the latest step to widen the oil-dependent economy.

Deputy Governor for investors’ services, Ibrahim Al Suwayel, at the Saudi Arabian General Investment Authority, stated that the move focused to bolster the country’s economic changes.

Officials have already seen “a positive effect on new investment, following the recent regulation to reduce the time taken to issue business licences from two days to just four hours,” he mentioned in a statement.

Saudi Arabia is entering a crucial year for Crown Prince Mohammed bin Salman’s plan to remake the economy, dubbed Vision 2030, as officials try to increase government revenue without snuffing out economic growth.

It introduced the 5 percent value-added tax on January 1 alongside higher fees for foreign workers and subsidy cuts that drove up electricity and fuel prices.